Which Tax Applicable on Direct Sale

[NILESH PITALE]

Dear Expert

One of Our Client is Registered under Gujarat State and He has to sale the Goods to his Customer In Gujarat and he is also Registered under Gujarat. for Such transaction our Client is purchasing the Goods from Maharashtra state and Directly Dispatching the goods from Maharashtra to Gujarat - Under Such Case Which Tax should Levied from Gujarat to Gujarat sale.. Whether CGST/SGST Applicable or IGST Applicable

Please Guide

AI Summary

GST Transaction Rules: Apply IGST for Maharashtra-Gujarat Dispatch, CGST & SGST for Gujarat Sale, Ensure e-Way Bill Compliance. A client in Gujarat, registered under the Goods and Services Tax (GST), is purchasing goods from Maharashtra and directly dispatching them to a customer in Gujarat. The query is about which tax should be applied for this transaction. Responses clarify that two invoices are necessary: one from the Maharashtra vendor to the Gujarat client, applying IGST, and another from the Gujarat client to the Gujarat customer, applying CGST and SGST. It is advised to avoid disclosing the client's margin to the customer by managing invoice delivery properly. The discussion also notes the importance of e-Way Bill compliance in such transactions.